Key Developments

The United States has launched a new round of strikes against Iran, escalating regional tensions and triggering declines across Asian stock markets. Kuwait detected missile and drone threats, prompting the activation of its air defense systems. Market concerns over potential disruptions to crude oil supplies through the Strait of Hormuz pushed international oil prices up by more than 3%.

Asian-Pacific stock markets mostly fell on Thursday, influenced by overnight news of renewed U.S. military action against Iran, which heightened Middle East tensions. A U.S. official stated on Wednesday that U.S. forces had targeted a military site assessed to pose a threat to American personnel and commercial shipping in the Strait of Hormuz. Kuwait's military announced via social media platform X that it had detected hostile missile and drone activity on Thursday and had formally activated its air defense systems. Iran's Tasnim News Agency, citing a statement from the Islamic Revolutionary Guard Corps, reported that Iran had launched a counterstrike against a U.S. air base following American attacks on targets near Bandar Abbas airport.

Performance of Major Asia-Pacific Indices

Australia's S&P/ASX 200 Index: 8,592.90 points, down 124.80 points or 1.43% Hong Kong's Hang Seng Index: 25,006.16 points, down 322.07 points or 1.27% South Korea's KOSPI: 8,185.29 points, down 43.41 points or 0.53% Japan's Nikkei 225 Index: 64,693.12 points, down 306.29 points or 0.47% India's NIFTY 50 Index: 23,907.15 points, down 6.55 points or 0.03% China's Shanghai Composite Index: 4,098.636 points, up 4.909 points or 0.12%

July West Texas Intermediate crude oil futures rose 2.55% to $90.94 per barrel, while July Brent crude futures gained 2.57% to $96.69 per barrel. Major Asian indices later pared some of their losses. South Korea's KOSPI closed down 0.53% at 8,185.29 points, while the KOSDAQ small-cap index fell 2.54% to 1,104.36 points. Japan's Nikkei 225 Index ended the session 0.47% lower at 64,693.12 points, and the TOPIX index declined 0.41% to 3,902.01 points. Australia's S&P/ASX 200 Index closed down 1.43% at 8,592.90 points. China's CSI 300 Index reversed early losses to finish 0.12% higher at 4,914.21 points. In Hong Kong, the Hang Seng Index weakened again in the final hour of afternoon trading, extending its loss to 1.38%. India's NIFTY 50 Index was largely flat, while the BSE SENSEX declined 0.19%.

Crude Oil and U.S. Stock Futures

Intercontinental Exchange July Brent crude futures: $96.65 per barrel, up $2.36 or 2.50% (data delayed as of 09:47 British Summer Time). U.S. stock index futures edged higher: S&P 500 futures and Nasdaq 100 futures both gained less than 0.1%; Dow Jones Industrial Average futures rose 49 points, or 0.1%. During Wednesday's regular trading session, the three major U.S. stock indices again reached record closing highs. The S&P 500 inched up 0.02% to 7,520.36 points. The Dow Jones Industrial Average advanced 182.60 points, or 0.36%, to close at 50,644.28 points. The Nasdaq Composite Index rose modestly by 0.07% to 26,674.73 points.